Slow Day

August 27, 2007 | Posted by Jorge

It’s been a slow day out on the market. Housing reports came in this morning and investors appeared to have mixed reactions. Existing home sales dropped again, marking the fifth-straight month it has done so. Unsold home inventories rose by 5.1% last month. Median prices of homes also fell from $230k to $220k.

Although I don’t wish for the housing sector to continue on its downward trend, I do hope the situation stabilizes somewhat over the next couple of years. By that time my fiancee and I will be out in the real world, leaving behind the shelter of college life. We will need to find a home soon after we leave college and with the housing market starting to bottom out, it may be the best time for first time home buyers to jump in. Granted, mortgages may be a bit more difficult to apply and receive, but the cost of a home will have (hopefully) decreased substantially so that first time buyers can more easily afford one.

Markets appear to be down about 25 points in a relatively slow and flat trading day. Investors must have already taken off for Labor Day weekend, eh?

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